Reputation Shocks and Strategic Responses in Electoral Campaigns

Tinbergen Institute Discussion Paper 2021-049/V

43 Pages Posted: 25 May 2021

See all articles by Rubén Poblete-Cazenave

Rubén Poblete-Cazenave

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); Tinbergen Institute

Multiple version iconThere are 2 versions of this paper

Date Written: May 24, 2021

Abstract

Information affecting a candidate's reputation might have significant electoral consequences. Do candidates respond to the release of information? Using Brazilian elections and audits as an exogenous source of information, I show that both incumbent and challenger increase their campaign spending when detrimental information affects the incumbent's reputation. Conversely, beneficial information decreases candidates' spending. The main channel is that information affects the expected competitiveness of elections and, therefore, candidates' spending. Only information disclosed prior to electoral campaigns impacts campaign spending. Furthermore, incumbents also adapt a conditional cash transfers program by increasing (decreasing) the beneficiaries when detrimental (beneficial) reputation shocks occur.

Keywords: Information, Politicians’ reaction, Campaign spending, Elections, Corruption

JEL Classification: D72, D73, D83, P16

Suggested Citation

Poblete-Cazenave, Rubén, Reputation Shocks and Strategic Responses in Electoral Campaigns (May 24, 2021). Tinbergen Institute Discussion Paper 2021-049/V, Available at SSRN: https://ssrn.com/abstract=3851937 or http://dx.doi.org/10.2139/ssrn.3851937

Rubén Poblete-Cazenave (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

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